Pioneer Lithium (ASX:PLN) has applied for 730km2 of strategic rare earth element (REE) tenements in Bahia State, Brazil, following a site visit.
The visit confirmed the presence of highly weathered saprolite clays, presenting a favourable geological setting for critical mineral discoveries.
Pioneer, which has a $6.78 million market capitalisation, says the tenements — which comprise the Verde Valor Project — lie within a coincident thorium-uranium radiometric anomaly and have potential for clay-hosted REE deposits.
The company expects Verde Valor to complement its other critical minerals projects, including its lithium tenements in Ontario, Canada.
Despite applying for the new project, Pioneer says it remains focused on its flagship Root Lake Lithium Project and will continue to undertake activities set out in its IPO prospectus.
Described as an ‘immaterial’ expense, Verde Valor was staked using the company’s working capital.
The project sits near Morro de Chapéu and Tapiramutá City in Bahia and is proximal to local infrastructure, with well-maintained state highways and access to power and water.
“The Verde Valor Project presents an excellent opportunity for Pioneer to enter the fast-growing Brazilian critical minerals market,” Executive Chairman Robert Martin says.
“We believe Verde Valor represents an excellent opportunity to enter a world-class jurisdiction for highly sought after clay-hosted rare earths which are paramount in the green energy transition, and will fully complement our other strategic critical minerals assets.”
Pioneer is a lithium explorer and developer with a suite of assets situated in Ontario and Quebec.
Write to Adam Drought at Mining.com.au
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